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Which of the following statements about ratio analysis is CORRECT? a . Offering discounts to customers who pay with cash rather than buy on credit
Which of the following statements about ratio analysis is CORRECT?
a Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is an example of "window dressing."
b "Window dressing" is any action that does not improve a firm's fundamental longrun position and thus increases its intrinsic value.
c Using some of the firm's cash to reduce longterm debt is an example of "window dressing."
d Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase fixed assets is an example of "window dressing."
e Borrowing on a longterm basis and using the proceeds to retire shortterm debt would improve the current ratio and thus could be considered to be an example of "window dressing."
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